The Securities and Exchange Board of India (SEBI) has intensified technology-driven enforcement to curb investor scams and safeguard retail investors. Chairman Tuhin Kanta Pandey highlighted the use of artificial intelligence (AI), enhanced surveillance, and investor awareness initiatives to tackle pre-investment frauds, insider trading, and fake intermediaries, ensuring market transparency and safety.
The Securities and Exchange Board of India (SEBI) has announced a major push toward technology-driven enforcement to protect retail investors from rising scams. With retail participation in markets surging, SEBI is deploying advanced surveillance tools, including artificial intelligence, to detect fraudulent activities and strengthen investor protection.
Chairman Tuhin Kanta Pandey, completing one year at the helm, emphasized that scams often occur before investors even engage with registered intermediaries. Fraudsters are increasingly using fake trading apps, WhatsApp groups, and promises of unrealistic returns to divert funds. SEBI’s new enforcement measures aim to curb such pre-investment frauds and ensure safer participation for retail investors.
Key Highlights
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SEBI intensifies technology-driven enforcement to curb investor scams
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AI-powered surveillance deployed to detect market manipulation and fraud
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Focus on pre-investment scams involving fake apps and unregistered brokers
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Chairman Pandey urges investors to conduct personal due diligence
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SEBI Check tool integrated with UPI to verify intermediaries before payments
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Partnerships with AI firms for multilingual investor awareness campaigns
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Push for stricter insider trading enforcement with banks and regulators
Industry Significance
Analysts note that SEBI’s tech-driven approach marks a significant evolution in market regulation. By leveraging AI and digital tools, SEBI aims to enhance transparency, reduce fraudulent activities, and build investor confidence. The regulator’s emphasis on investor education and awareness campaigns further strengthens retail participation, ensuring India’s capital markets remain resilient and trustworthy.
Sources: Outlook Business, CNBC TV18, The Hindu, Rediff MoneyWiz, Civilsdaily